View full sizePhoto provided by KBRThe exterior of a building at the Qarmat Ali water treatment plant in southern Iraq in 2003. Oregon soldiers are suing KBR, accusing the contractor of knowingly exposing them to the carcinogenic compound sodium dichromate, which was used at the site to prevent corrosion.

Magistrate Judge Paul Papak on Monday denied a request to remove KBR Inc. as a defendant in the case brought by 12 Oregon soldiers who accuse the defense contractor of knowingly exposing them to a carcinogen in southern Iraq in 2003.

Lawyers for defense contractor KBR Inc.
asked the federal judge to remove the parent company, KBR Inc., as a defendant in the
lawsuit. They note that KBR Inc., wasn't formed until 2006, three years
after the soldiers say the company knowingly exposed them to a
carcinogen at a water treatment plant in southern Iraq.

Instead, they said that
the entity that worked at the water treatment plant is a division of
the company called Kellogg, Brown and Root Services. That is the only
"proper defendant," KBR argued.

The decision could have implications if the
jury awards damages to the soldiers. KBR Inc., reported 2011
calendar year revenues of $9.3 billion. Revenues for Kellogg, Brown and
Root Services are not broken out, but would be smaller.

Geoffrey Harrison told Papak he understood the ruling, but disagrees with it.

The ruling means that the soldiers' lawyers may introduce information about KBR's corporate finances into the case file. That information may come into play if jurors decide to award damages to the soldiers.